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    JAPAN-IMF PARTNERSHIP ON CAPACITY DEVELOPMENT ANNUAL REPORT 2020


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    JAPAN-IMF PARTNERSHIP ON CAPACITY DEVELOPMENT Japan Administered Account for Selected IMF Activities ANNUAL REPORT FISCAL YEAR 2020 Ancillary materials for the Annual Report can be accessed at the JSA Annual Report web page at https://www.IMF.org/external/pubs/ft/ta/index.asp. Print copies of the full report with annexes are available from the IMF Institute for Capacity Development, 700 19th Street, NW, Washington, DC 20431.


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    CONTENTS 1 Message from the 9 33 JAPAN-IMF PARTNERSHIP APPENDICES Japanese Government ON CAPACITY 34 Appendix I. DEVELOPMENT 2 Japan-IMF Partnership at a Glance 11 A Japan’s Contributions JSA Technical Assistance and Training—FY2020 Portfolio Summary 23 B A Programmatic Approach to 36 Appendix II. Capacity Development 3 Introduction and Background 25 C Regional Office for Asia and Joint Japan-IMF Field Visits, FY1996–FY2020 the Pacific 37 Appendix III. 29 D Japan-IMF Scholarship Externally Financed Appointee 4 IMF Capacity Development Program For Asia Program 31 E Japan-IMF Scholarship 38 Appendix IV. Program for Advanced JSA Financial Statement 6 Studies Acronyms and Abbreviations 39 ANNEX 40 Annex I. JSA New and Ongoing Capacity Development (CD) Programs in FY2020 ii | Annual Report | Japan-IMF Partnership on Capacity Development


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    FIGURES BOXES TABLES 3 Figure 1. Implementation of 13 Box 1. The Japan-IMF Initiative 12 Table 1. Contributions by IMF Capacity Development, on Online Learning Japan, FY1990-2020 FY2015-2020 14 Box 2. Keys To Success in 13 Table 2. Japan’s Participation in 11 Figure 2. External Remote CD—Lessons Learned IMF CD Multi-Partner Thematic Partner Contributions for from Revenue Administration Vehicles Capacity Development, Reform and Modernization FY2011-2020 Projects for Asian Countries 24 Table 3. JSA Annual Commitments for Capacity 12 Figure 3. Japan Annual 14 Box 3. Improving Cash Development by Region, Contributions to Capacity Management Thanks To Better FY1993-2020 Development by Activity, Expenditure Forecasting FY1990-2020 Capabilities In Line Ministries In 24 Table 4. JSA Annual Mali Commitments for Capacity 29 Figure 4. JISPA Alumni by Development by Topic, FY1993- Affiliation, FY1993-2020 15 Box 4. “FIRST” in Myanmar: 2020 Initial Steps Towards Treasury Automation 30 Table 5. Japan-IMF Scholarship Program for Asia Distribution 15 Box 5. Blended Online of Scholars by Country and Course—Videoconferencing Affiliations, 1993–2020 Support to the State Bank of Vietnam (SBV) 32 Table 6. Japan-IMF Scholarship Program for Advanced Studies 16 Box 6. Strengthening Climate Resilience: Seminar for Small Island States 18 Box 7. PIMA Follow-Up in Kenya 19 Box 8. Financial Sector Technical Assistance Amidst COVID-19 Developments in Myanmar 20 Box 9. High-Level Peer-to- Peer Forum: Central Bank Communications in ASEAN-5 27 Box 10. JISPA Townhall Meeting with Managing Director Kristalina Georgieva Annual Report | Japan-IMF Partnership on Capacity Development | iii


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    iv | Annual Report | Japan-IMF Partnership on Capacity Development


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    MESSAGE FROM THE JAPANESE GOVERNMENT This FY20 JSA annual report summarizes the current state of Japan’s cooperation with the IMF in capacity development (CD). With a 30-year history of close coordination and continuous improvement, the JSA-supported IMF CD activities have evolved to the current breadth and depth of their coverage. The FY20 has turned out to be an especially challenging year. The COVID-19 pandemic has increased the pressures for substantial fiscal spending to contain the pandemic and stabilize the economy. In addition to the challenges of funding and managing such emergency spending, countries would need to face longer-term challenges of ensuring fiscal and macroeconomic sustainability in the recovery phase. Proper public financial management, ensuring debt transparency and sustainability, and enhancing domestic revenue mobilization have become more important than ever to cope with such challenges. Accordingly, the IMF’s CD is expected to play an ever more prominent role. Japan’s support through JSA is based on our firm belief that the IMF is best placed to provide CD activities in a timely and appropriate manner, given its comprehensive understanding of country specific demands through its regular policy dialogue with the recipient countries and close coordination with other relevant stakeholders. The IMF’s online learning, which Japan has been supporting since 2017, will play an especially pivotal role in helping member countries learn wide-ranging issues to make holistic policy decisions. Japan stands ready to make utmost efforts to improve the effectiveness and efficiency of the IMF CD activities. We look forward to further cooperating with the IMF. Kentaro Ogata Director of the International Organizations Division, International Bureau, Ministry of Finance, Japan. Annual Report | Japan-IMF Partnership on Capacity Development | 1


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    JAPAN-IMF PARTNERSHIP AT A GLANCE The Government of Japan is the longest standing partner the Tax Administration Diagnostic Assessment Tool; in International Monetary Fund (IMF) capacity development the Revenue Mobilization Thematic Fund; and the Data (CD) efforts, with $685 million in funding to date. More than for Decisions (D4D) Fund. The IMF-Japan partnership has 100 IMF member countries have benefited from Japan- also expanded in recent years to include support for IMF funded CD activities. online courses; and CD programs are also implemented through the IMF Capacity Development Office in Thailand In fiscal year 2020 (FY2020), The Government of Japan (CDOT) and the IMF-Singapore Regional Training Institute provided a new contribution of $34 million, of which $29 (STI). This year, Japan funded two bilateral projects focusing million financed a large portfolio of 26 bilateral programs. on debt management in West Africa and the Pacific thus In the past five years, Japan has consistently been complementing the work of IMF’s regional centers in responsible for about one-fifth of all external financing those regions. to IMF CD. In addition, Japan supports two scholarship programs: Japan-funded IMF programs address countries’ CD needs the Japan-IMF Scholarship Program For Asia, and the and are consistent with Japan’s international cooperation Japan-IMF Scholarship Program for Advanced Studies, priorities and the IMF’s commitment to the Sustainable as well as the IMF’s Regional Office for Asia and the Pacific. Development Goals (SDGs). Programs typically address fiscal issues, monetary and capital market reforms, The IMF and all member countries benefitting from the macroeconomic statistics, and macroeconomic management. IMF-Japan partnership extend their appreciation to the authorities and citizens of Japan for their long-standing, Japan has committed resources to selected multi-partner highly valued support and look forward to continuing thematic initiatives, such as the Anti-Money Laundering/ the strong and effective partnership. Combating the Financing of Terrorism Thematic Fund; 2 | Annual Report | Japan-IMF Partnership on Capacity Development


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    INTRODUCTION AND BACKGROUND The IMF provides capacity development, comprised of one-third of the IMF’s spending. Although internal resources hands-on technical assistance and training, to help countries finance a considerable amount of CD, financial support build effective economic institutions that can implement from partners helps the IMF deliver high-quality capacity more effective policies. These capacity development efforts development that responds to member country needs and help countries achieve their growth and development aligns with IMF’s and global development priorities. External objectives and are an important contribution to countries’ partners such as Japan play an important role, including progress toward the Sustainable Development Goals (SDGs). through support to regional capacity development centers, thematic funds focused on development priorities, and Capacity development is fully integrated with the IMF’s bilateral projects. In FY2020, activities financed by partners lending and surveillance activities. It accounts for about totaled about $168 million. FIGURE 1. IMPLEMENTATION OF IMF CAPACITY DEVELOPMENT, FY2015-20201 350 300 250 200 150 100 50 0 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 IMF-financed Externally-financed Source: Office of Budget and Planning (OBP) Analytic Costing and Estimation System (ACES). 1 Spending refers to direct cost only, which includes all cost directly attributed to both Fund- and externally financed CD activities and allocated intra-departmental support costs. Corporate support and governance costs are excluded. Annual Report | Japan-IMF Partnership on Capacity Development | 3


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    IMF CAPACITY DEVELOPMENT Strong economic institutions foster effective policies that This year, in response to the COVID-19 pandemic, lead to economic stability, inclusive growth, and job creation. capacity development is adapting to support That is why, for more than 50 years, the IMF has provided countries as rapidly as possible and where it is needed technical assistance and training to central banks, finance most. CD supports countries’ immediate priorities as they ministries, tax authorities, and other economic institutions. steer their economies through the crisis, as well as longer- (https://www.IMF.org/en/Capacity-Development). This helps term needs that will be crucial for countries to get back on countries raise public revenues, modernize banking systems, track towards the Sustainable Development Goals. CD is develop strong legal frameworks, improve governance, and an essential complement to the IMF’s financial support IMF capacity development is delivered to countries through through emergency assistance and our regular programs, short-term staff visits from IMF headquarters in Washington, significantly increasing the impact of our engagement. DC; in-country placements of long-term resident advisors; Thus far, over 90 percent of countries that have requested a network of regional CD centers; face-to-face training; IMF financial assistance have also received support in the and free online learning courses. Since 2017, Japan has form of technical advice, practical tools, and policy-oriented supported the development and delivery of IMF online training to build institutional capacity and staff skills to learning (https://www.IMF.org/external/np/ins/english/ manage the crisis. The demand for capacity development learning.htm). support will continue, and an integrated approach provides the foundations countries need for a strong and sustainable recovery. 4 | Annual Report | Japan-IMF Partnership on Capacity Development


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    National Training Workshop on the implementation of Commitment plans and cash flow plan in Mali* * Most pictures featured in this report are from the early part of the fiscal year when events took place in person prior to COVID-19. Annual Report | Japan-IMF Partnership on Capacity Development | 5


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    ACRONYMS AND ABBREVIATIONS AICE Integrated State Accounting Application ECOWAS Economic Community of West African States AFR IMF’s African Department EDS External Debt Statistics AFRITAC Africa Regional Technical EFA Externally Financed Appointee Assistance Center EP IMF Economist Program AML-CFT Anti-Money Laundering/Combating the ESS External Sector Statistics Financing of Terrorism Thematic Fund FAD IMF’s Fiscal Affairs Department APD IMF’s Asia and Pacific Department FIRST Financial Information Reporting System BOM Bank of Mongolia for the Treasury BOP Balance of Payments FISD Financial Institutions Supervision Department CARTAC Caribbean Regional Technical FMIS Financial Management Information System Assistance Centre FPAS Forecasting and Policy Analysis System CB Central Bank FSI Financial Soundness Indicators CBM Central Bank of Myanmar FY Fiscal Year (FY20 May 1, 2019-April 30, 2020) CCPAs Climate Change Policy Assessments GDP Gross Domestic Product CD Capacity Development GDCE General Department of Customs and Excise CDOT IMF Capacity Development Office in Thailand GDDS General Data Dissemination System CEMAC Central African Economic and GFS Government Finance Statistics Monetary Community GST Goods and Services Tax CIP Compliance Improvement Plan ICD IMF’s Institute for Capacity Development CLMV Cambodia, Lao P.D.R., Myanmar, IFMIS Integrated Financial Management and Vietnam Information System CoA Chart of Accounts IFRS International Financial Reporting Standard COFTAM Committee for the Coordination of IIE Institute of International Education Financial Sector Technical Assistance to Myanmar IIP International Investment Position D4D Data for Decisions Fund IPSAS International Public Sector Accounting Standards DNTCP National Treasury and Public Accounting Department ITRS International Transactions Reporting System D-SIBs Domestic Systemically Important Banks JSA Japan Subaccount EAC East African Community JICA Japan International Cooperation Agency EAMI East African Monetary Institute JIMS Japan-IMF Macroeconomic Seminar for Asia 6 | Annual Report | Japan-IMF Partnership on Capacity Development


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    JISP Japan-IMF Scholarship Program for PFTAC Pacific Financial Technical Advanced Studies Assistance Centre JISPA Japan-IMF Scholarship Program for Asia PIM Public Investment Management JISPA-CE Japan-IMF Scholarship Program for Asia PIMA Public Investment Continuing Education Management Assessments LTX Long-term Expert/Advisor RBS Risk-based Supervision LPCO Liquidity Providing RMTF Revenue Mobilization Thematic Fund Collateralized Operations SARTTAC IMF’s South Asia Regional Training MAC Monetary Affairs Committee Meeting and Technical Assistance Center MASS Macroprudential Analysis, Stress Testing, SBV State Bank of Vietnam and Statistics SEE State-Owned Economic Enterprise MCD IMF’s Middle East and Central SDDS Special Data Dissemination Standard Asia Department SOE State-Owned Enterprise MCM IMF’s Monitoring Capital Markers Department SDGs Sustainable Development Goals MOOCs Massive Open Online Courses SDMX Statistical Data and Metadata eXchange MOPF Ministry of Planning and Finance SMEs Small and Medium-size Enterprises MOPFI Ministry of Planning, Finance, STA IMF’s Statistics Department and Industry STI IMF – Singapore Regional MPAF Monetary and Fiscal Policy Analysis Training Institute and Framework STX Short-term Advisor MPAFx Monetary Policy Analysis and Forecasting TA Technical Assistance NBC National Bank of Cambodia TADAT Tax Administration Diagnostic NBFI Non-bank Financial Institutions Assessment Tool NPL Non-performing Loan TSA Treasury Single Account NRA National Risk Assessment VTC Video Teleconferencing NSDP National Summary Data Page WAEMU West African Economic and Monetary Union OAP IMF Regional Office for Asia and the Pacific PEFA Public Expenditure and Financial Assessment PFM Public Financial Management Annual Report | Japan-IMF Partnership on Capacity Development | 7


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    Monetary and FX policy workshop in Myanmar 8 | Annual Report | Japan-IMF Partnership on Capacity Development


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    JAPAN-IMF PARTNERSHIP ON CAPACITY DEVELOPMENT Annual Report | Japan-IMF Partnership on Capacity Development | 9


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    Closing ceremony of the JSA-AFR Project on Improving External Sector Statistics in 17 Francophone African Countries held in Mauritius 10 | Annual Report | Japan-IMF Partnership on Capacity Development


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    A JAPAN’S CONTRIBUTIONS The vehicle for the Government of FIGURE 2. EXTERNAL PARTNER CONTRIBUTIONS FOR Japan’s support to the IMF’s CD CAPACITY DEVELOPMENT, FY2011-20201, 2 operations is the Japan Subaccount (JSA) of the Framework Administered 19% Account for Selected Fund Activities. Japan Its contributions to the IMF since FY1990 total $685 million, of which 41% about $556 million has provided Others support for IMF CD projects, $39 million for activities of the Regional Office for Asia and the Pacific (OAP), and $91 million for the Japan-IMF Scholarship 17% Program for Asia and the Japan-IMF European Scholarship Program for Advanced Commission Studies (Table 1 and Figure 3). In the period FY2011–2020, Japan alone was responsible for almost 20 percent of external financing for IMF CD (Figure 2). In FY2020, Japan contributed $34 8% million, of which $29 million was to support a portfolio of 26 CD programs.1 7% United Switzerland 8% Kingdom Several programs are implemented Canada through CDOT and STI. Japan also contributed to the Data for Decisions Source: Capacity Development Information Management System (CDIMS). Fund, the Tax Administration 1 Excludes in-kind contributions. Funds received during FY2011-2020, not adjusted for Diagnostic Assessment Tool, and Regional Training Centers (RTCs) cost recovered directly. the Externally Financed Appointees 2 Based on 3-year averages of signed agreements, Japan is the second top partner with a Program.2 Contributions also support share of 16%, after the EU with 21%. the IMF Regional Office for Asia and the Pacific and to two scholarships programs. 1 Appendix 1 presents a summary of all JSA programs. 2 Details on Japan’s participation in multi- partner initiatives in Table 2. Annual Report | Japan-IMF Partnership on Capacity Development | 11


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    TABLE 1. CONTRIBUTIONS BY JAPAN, FY1990-2020 (In millions of U.S. dollars) Total FY1990-2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY1990-2020 Japan’s Contributions1 528.0 30.4 28.9 33.7 30.4 33.7 685.1 of which Capacity Development 2 425.1 24.8 23.8 27.9 25.5 28.6 555.8 Regional Office for 29.0 1.8 1.7 2.1 2.0 2.1 38.8 Asia and the Pacific Scholarships 73.9 3.7 3.4 3.7 2.9 3.0 90.5 The Japan-IMF Scholarship 48.4 2.8 2.5 2.8 2.4 2.4 61.3 Program for Asia Japan-IMF Scholarship Program for 25.5 0.9 0.9 0.8 0.5 0.6 29.2 Advanced Studies Source: Institute for Capacity Development, IMF. 1 Until FY10, contributions to the JSA and the Japan-IMF Scholarship Program for Advanced Studies were administered under the Japan Administered Account for Selected IMF Activities (JAA) and the Framework Administered Account for Selected IMF Activities (FAA), respectively. New contributions are now administered under the Japan Subaccount under the IMF Framework Administered Account for Selected Fund Activities (SFA). The JAA and the FAA accounts are closed, with the remaining funds transferred under Japan Subaccount under SFA. 2 Includes $154,603 transferred to finance the operations of the Office of the Executive Director for Japan in FY11, and $324,344 transferred to SPR and OBP to cover expenses in support to Japan’s G20 Presidency in FY19-20. FIGURE 3. JAPAN ANNUAL CONTRIBUTIONS TO CAPACITY DEVELOPMENT BY ACTIVITY, FY1990-20201 40 CD and OAP Scholarships Multi-Partner Initiatives 35 30 25 Millions 20 15 10 5 - 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Source: Institute for Capacity Development, IMF. 1 Includes $154,603 transferred to finance the operations of the Office of the Executive Director for Japan in FY11, and $324,344 transferred to SPR and OBP to cover expenses in support to Japan’s G20 Presidency in FY19. 12 | Annual Report | Japan-IMF Partnership on Capacity Development


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    TABLE 2. JAPAN’S PARTICIPATION IN IMF CD MULTI-PARTNER THEMATIC VEHICLES (In millions of U.S. dollars) FY20 Contributions to Multi-Partner Vehicles 3.0 Tax Administration Diagnostic Assessment Tool Subaccount (TADAT) - Phase II 0.5 Data for Decisions Fund Subaccount (D4D) 2.0 Externally Financed Appointee Subaccount (EFA) - Cohort III 0.5 Box 1. The Japan-IMF Initiative on Online Learning The IMF Institute Learning Channel was created to ramp up IMF’s response to COVID-19 with a permanent source of free, bite-size learning videos accessible to government officials and the general public. Available on YouTube, the channel’s tagline, “Come and Grow,” is a play on the expression “come and go” to show the ease with which viewers can arrive, grow their knowledge with each visit, and depart again. All micro-learning videos are short, or typically up to 5 minutes. Micro-learning videos give viewers the flexibility to focus on specific topics, to fill gaps, and to improve knowledge or job skills. Micro-learning videos can also be flexibly used in blended CD deliveries. The channel is the latest addition to the Fund’s online learning program. The channel is organized by thematic sections, such as “Macroeconomic Statistics,” which are broken down into video playlists, such as “What is public sector debt?”. As governments’ fiscal responses to COVID-19 have amplified the concerns for debt sustainability globally, the channel currently offers 30 micro-learning videos addressing key issues for policymakers related to public debt statistics. As development and delivery of the IMF’s online learning product are made possible with financial support from the Government of Japan, Japan is prominently acknowledged on the channel, further increasing the visibility of Japan-IMF partnership on online learning. The Learning Channel was first featured on April 17 in the 2020 Spring Meetings newsletter. Since then, the channel has been continuously promoted on the IMF’s websites, social media sites, newsletters and targeted email marketing. New micro-learning content is posted biweekly on Tuesdays. Annual Report | Japan-IMF Partnership on Capacity Development | 13


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    Box 2. Keys To Success in Remote CD—Lessons Learned from Revenue Administration Reform and Modernization Projects for Asian Countries Due to COVID-19, support for JSA projects transitioned to remote CD delivery at the end of FY20. While challenging, with many administrations either working from home or closed, the Fiscal Affairs Department (FAD) has had some success from which to build future support. One notable example is the remote CD to Lao P.D.R. where the expert reviewed the draft customs law and provided comments for improvements after which the Lao Customs Department revised the draft customs law then submitted it to the government and National Assembly. This time-sensitive project was completed within the established timelines. Lessons learned from the recent remote delivery experience point to several factors critical to ensure success, which include (i) the beneficiary has been responsive to prior advice; (ii) good technology and internet access are available not only in the beneficiary’s headquarters building but also the staff’s homes; (iii) the issue is narrowly defined and specific; (iv) the issue is a priority under the current COVID-19 crisis; (v) there are pre-existing relationships between the Fund staff and experts with country officials; and (vi) additional time is allowed to complete the work remotely due to added coordination and communication challenges that could be resolved quickly when face-to-face. FAD experience indicates that remote capacity development (CD) is possible and can be effective. It is, nevertheless, more challenging especially for broader, multi-agenda missions or diagnostics, and CD on structural reforms and comprehensive institution building which require in-country CD support. In general, remote delivery complements but does not substitute in-country CD. Box 3. Improving Cash Management Thanks To Better Expenditure Forecasting Capabilities In Line Ministries In Mali A key element of the 2019 Action Plan of the National Treasury and Public Accounting Department (DNTCP) is to help line ministries improve their ability to forecast their expenditure so as to integrate them properly into the annual cash plan drawn up by the Treasury. An important national training workshop, in February 2020, kicked off work on the implementation of “commitment plans” and their articulation with the cash flow plan. This event, organized by the Ministry of Economy and Finance of Mali, mobilized more than 90 participants from the Ministry of Finance and Financial Directorates of line ministries and public institutions. The inclusive and participatory approach adopted by the authorities generated strong media coverage (radio, national television, newspapers and the Internet), contributing to the ownership of the reform. Following the workshop, the Ministry of Finance launched the work on the expenditure commitment plans in eight pilot ministries, with an IMF resident advisor providing overall methodological guidance and hands-on support to four key ministries (Health and Social Affairs, Employment and Vocational Training, National Education, Security and Civil Protection). The conditions for a gradual and lasting implementation of the ministerial commitment plans are now met. Initially designed on spreadsheets, they will also be integrated into information systems, particularly the Integrated State Accounting Application (AICE2) currently being deployed in Mali, as part of the cash management module being designed with the support of the JSA project. 14 | Annual Report | Japan-IMF Partnership on Capacity Development


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    Box 4. “FIRST” in Myanmar: Initial Steps Towards Treasury Automation In Myanmar, the largely paper-based public financial management (PFM) processes impedes accuracy, timeliness and efficiency of fiscal reporting, and undermine the effectiveness of fiscal and budget management. Following the advice of the IMF Fiscal Affairs Department (FAD) in 2017, the Ministry of Planning and Finance (MOPF) started working on a phased development of a government financial management information system (FMIS). In the following two years, a simple reporting system was developed at very affordable cost, through a local software developer and with active support of the Regional PFM Advisor at the IMF’s Capacity Development Office in Thailand (CDOT) and a peripatetic Treasury Automation expert. The system, FIRST—a catchy acronym for “Financial Information Reporting System for the Treasury”—has been designed to capture and store monthly financial information of Union Ministries, State Economic Enterprises (SEEs), and State Governments into a single Treasury database and provide consolidated end-of-month and end-of year financial reports. FIRST is now fully functional at the Treasury level. The roll-out of a web-based data collection application for departments and SEEs is ongoing. For government entities with limited internet connection, automated email or CD-ROM input has been provided. The development of a home-grown system at an appropriate pace, has allowed the MOPF to control costs and risks of systems development, and gain experience for a large scale FMIS system. The success of FIRST has encouraged the ministry for further enhancement. FIRST 2.0—development expected to start in the second half of 2020—will aim to unify budget and financial reporting. In order to extend its reach, FIRST 2.0 will likely include a fully compatible modular accounting application that will be deployed at the spending unit level to feed into the core Treasury system, spreading the benefits of automation beyond the Treasury. Box 5. Blended Online Course—Videoconferencing Support to the State Bank of Vietnam (SBV) Following the strong momentum in early implementation of the technical assistance project on developing forecasting and policy analysis system (FPAS) at the SBV, the IMF mission team quickly scaled up virtual TA support to the SBV after the COVID-19 pandemic. This support coincided with the launch of the IMF online course on monetary policy analysis and forecasting (MPAFx), in which the SBV’s core FPAS group participated. The mission team held weekly VTC calls with the core group to answer course related questions and consult on issues relevant to the ongoing model-building FPAS TA support. Combining the online course with VTC calls helps to discuss more effectively general questions on economic theory and practice, including in the context of the COVID-19 crisis. Such issues covered the nature of the shocks and what these imply for monetary policy decision-making. In addition, the mission team provided virtual training on adapting an IMF pandemic-impact toolBox to Vietnam data in order to help gauge the impact on GDP based on sectoral-level assessment of the lockdown measures. Annual Report | Japan-IMF Partnership on Capacity Development | 15


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    Box 6. Strengthening Climate Resilience: Seminar for Small Island States FAD, in collaboration with the Caribbean Regional Technical Assistance Centre (CARTAC) and Pacific Financial Technical Assistance Centre (PFTAC) held a seminar on climate resilience in small islands on December 2019 at the IMF HQ. It brought together senior officials of finance ministries of 26 states from the Caribbean, Pacific, and Indian Ocean. The seminar provided valuable peer-to-peer learning exchange among small island states. Most of these states face similar challenges: more frequent and intensifying climate-related disasters and sea-level rise, and limited fiscal space and administrative capacity. Deputy Managing Director Tao Zhang delivered the opening remarks emphasizing that strong fiscal policies and effective fiscal institutions are critical for resilience building which requires improving physical infrastructure and the financial architecture. Executive Director Takuji Tanaka welcomed participants and emphasized Japan’s efforts of helping developing countries build resilience in the reception. FAD Director Vitor Gaspar closed the seminar underlining the Fund’s work on infrastructure governance and climate change policy assessments (CCPAs) in helping countries build up resilience. This event showcased successful collaboration within the IMF and among development partners. Six departments of the IMF presented the latest analytical and capacity development tools in the areas of macro, fiscal policy and PFM for building resilience. The World Bank shared its insights on disaster risk financing, building resilience in infrastructure, and climate financing. A senior official of Japan International Cooperation Agency (JICA), together with the representatives of Canada, the EU, Asian Development Bank, and Inter-American Development Bank shared their experiences and policies on helping small island states strengthen climate resilience. 16 | Annual Report | Japan-IMF Partnership on Capacity Development


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    Strengthening Climate Resilience—Seminar for Small Island States Annual Report | Japan-IMF Partnership on Capacity Development | 17


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    Box 7. PIMA Follow-Up in Kenya A short-term expert visited Kenya in October 2019 in support of an AFRITAC East mission to work with the Public Investment Management Unit and Budget Department in developing a prototype budget costing tool. The tool aimed to operationalize instructions provided to Ministries, Departments and Agencies in the 2019 Budget Guidelines to improve costing of public infrastructure projects, with the effect of improving information for decision making and providing a more reliable basis for budget estimates. Working with a core group of technical officers from the National Treasury and Planning, a new budget costing tool and accompanying guidelines, were developed. Training on the costing tool was provided to approximately 300 staff across 74 ministries, departments and agencies as part of a three-day workshop. This visit followed up on the earlier Public Investment Management Assessment for Kenya that was completed in 2018. Public Investment Management Assessment Follow-up in Kenya. Seated at front row center is H.E. Mr. Ambrose Dlamini, Prime Minister; and at front row left is Hon. Dr. Tambo Gina, Minister of Economic Planning and Development. 18 | Annual Report | Japan-IMF Partnership on Capacity Development


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    Box 8. Financial Sector Technical Assistance Amidst COVID-19 Developments in Myanmar Although the number of confirmed COVID-19 cases in Myanmar is relatively modest, the pandemic is expected to negatively impact the economy due to shrinking domestic and export demand and a sizeable drop in remittances and commodity prices. Maintaining financial stability is also of critical importance as the banking sector was already weak before the pandemic. The Central Bank of Myanmar (CBM) has quickly taken measures for monetary easing, liquidity provision and the temporary relaxation of supervisory requirements for banks, and stands ready to address the implications of the unprecedented crisis. All four MCM resident advisors were heavily involved in giving technical advice to the CBM, as well as supporting the intense policy dialogue between the authorities and the IMF country team. Their advisory work has been greatly helped by the IMF Policy Notes on various aspects of COVID-19 policy responses, many of which provided relevant background to the crisis- related policy discussions with the CBM. Besides its economic impact, COVID-19 also disrupted the traditional TA delivery, leading to a quick adoption of new (virtual) modality by the CBM and the MCM resident advisors. Some first lessons from this experience can inform the IMF’s medium- term TA work in Myanmar and other countries including: planning ahead and agreeing with counterparts on short-term goals and leveraging the other advisors’ expertise and Fund-wide knowledge, e.g. various policy notes and tools, as well as local interpreters. Risks and challenges to consider are a slower implementation pace, difficulty to secure the availability of senior management who are in crisis-mode, and poor connectivity. It is nevertheless vital to stay connected with counterparts in multiple ways and remain alert to new CD needs from the authorities and flexible to needed changes. Going forward, the impact of COVID-19 on monetary and financial stability in Myanmar will continue to influence CD delivery of CD, and the likelihood of more ad-hoc requests for advice as issues and related policy options emerge with the unfolding of the pandemic’s impact on the financial system. Central Bank Accounting and Internal Audit training in Myanmar Annual Report | Japan-IMF Partnership on Capacity Development | 19


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    Box 9. High-Level Peer-to-Peer Forum: Central Bank Communications in ASEAN-5 This closed-door highly interactive event among ASEAN-5 peers and International and IMF experts was the second in what is expected to become a series of annual high-level peer-to-peer forums with ASEAN-5 central banks. A key objective of this event was to integrate IMF capacity development with country surveillance conversations. The forum combined discussions on “why and what to communicate” with experiences on “how to communicate.” There was broad agreement that the complex issues related to integrated policy frameworks (i.e. monetary policy regimes with multiple key objectives and instruments) posed serious communication challenges. Moreover, central bank communications faced new demands, including reaching broader audiences, making accessible and “relatable,” messages in the rapidly evolving and challenging digital landscape. Broad key takeaways included: (i) effective communication is essential to the clarity of the central bank mandate and to the efficacy of its operations—both for the purpose of policy signaling and accountability; (ii) the range of communication channels has widened significantly, with central banks aiming to reach broader audience and through new media platforms; and (iii) CB communications on complex integrated frameworks is particularly challenging, e.g. maintaining financial stability and shielding the economy from volatile capital flows call for careful policy calibration of and require artful and clear communications. 20 | Annual Report | Japan-IMF Partnership on Capacity Development


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    High-Level Peer-to-Peer Forum: Central Bank Communications in ASEAN-5 Annual Report | Japan-IMF Partnership on Capacity Development | 21


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    Regional workshop on Customs Administration Modernization in Myanmar 22 | Annual Report | Japan-IMF Partnership on Capacity Development


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    B A PROGRAMMATIC APPROACH TO CAPACITY DEVELOPMENT Close dialogue and strategic period FY1993–2020, CD programs It also helped the introduction of consultations ensure that the Japan-IMF totaling $264.2 million focused on a new online learning modality—micro- partnership is based on mutual countries in the Asia and Pacific region, learning, which consists of short understanding and priorities. Close equivalent to over 50 percent of learning videos that are made available coordination also leads to better approved JSA technical assistance and to the broader public on the IMF implementation and increased positive related activities. Institute Learning Channel on YouTube. impact on the countries it benefits. These programmatic CD interventions Learning gains are significant and there SECTORAL PRIORITIES often require extensive consultations is evidence of stronger performance in Fiscal topics represented the largest classroom training by those participants with country authorities, diagnostics share, with 47 percent of yearly who have successfully completed an and review throughout the reform commitments in FY2020. Monetary and online course. The Online Learning process, and a robust result-based capital markets topics represented 19 Program was prominently featured at management framework to achieve percent, and followed by training (18 the Annual Meetings in October 2019. and sustain a lasting impact. Tailored percent), which reflects Japan’s strong to each country’s situation, hands-on support for the IMF Online Learning advice to develop capacity, peer JAPAN’S VISIBILITY Program, as well as the Singapore learning, and training are combined IMF staff understand the value of the Training Institute (STI). Table 4 shows through seminars, workshops, and contributions provided by Japan and annual commitments by sector for the the expertise of long- and short-term strive to provide visibility to Japan and period FY1993–2020. experts. Japanese experts are regularly all development partners. Previous considered for such assignments. external evaluation of Japan’s support IMF ONLINE LEARNING PROGRAM through the IMF highlighted that Japan provides financial support to JSA-funded IMF technical assistance REGIONAL COVERAGE the development and delivery of provides high visibility to Japan as IMF member countries worldwide IMF online learning courses. The IMF well as a positive image. In addition have benefited from Japan’s long- has leveraged technology to boost to highlighting Japan’s contribution standing and generous support. Table training delivery in macroeconomics in print and digital media, one venue 3 presents JSA regional commitments and finance to government officials. for increased outreach and visibility and their distribution, highlighting With massive open online courses are the joint IMF-Japan visits to how low- and lower-middle income (MOOCs), we bring our knowledge and countries that benefit from JSA-funded countries in the Asia and Pacific expertise closer to our members and to CD. These missions allow for fruitful region represent a priority target. the public. In FY2020, The JSA project discussions with local authorities to STI and CDOT complement support supported six new online courses and learn firsthand about their experiences, with customized training courses the delivery of 44 course sessions. challenges, and future needs, though for government officials. During the Annual Report | Japan-IMF Partnership on Capacity Development | 23


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    FY2020 visits were cancelled due to MONITORING AND EVALUATION IMF staff share an interim self- COVID-19. Annual publications, relevant OF THE JSA assessment with Japan of each promotional brochures, and digital Monitoring and evaluation of IMF JSA program towards the end of media—such as the IMF’s website and CD activities is currently conducted the fiscal year. Self-assessments online learning platform, social media, through regular self-assessments and help evaluate projects’ implementation and videos—all contribute to publicly partner-mandated evaluations by progress and results, as well as acknowledge and express appreciation independent consultants, as well as highlight challenges encountered. for Japan’s partnership with the IMF IMF-wide reviews every three to five In addition, an independent external on CD. years, such as the CD Strategy Review. evaluation, which will now take place every five years, examines Japan- funded programs. TABLE 3. JSA ANNUAL COMMITMENTS FOR CAPACITY DEVELOPMENT BY REGION, FY1993-20201, 2, 3 (In millions of U.S. dollars) FY2020 FY1993-2020 Region FY1993-2015 FY2016 FY2017 FY2018 FY2019 Total % Total % Africa 90.3 3.6 5.4 3.2 4.0 2.4 10% 108.9 21% Asia and Pacific 184.2 15.8 13.5 15.8 17.6 17.3 74% 264.2 51% Eastern Europe 4 38.9 - - - - - 0% 38.9 7% Europe 30.4 - - - - - 0% 30.4 6% Latin America and Caribbean 15.5 - - - - - 0% 15.5 3% Middle East and Central Asia 4 26.8 1.0 0.7 1.8 1.7 - 0% 32.0 6% Multiple Regions 22.0 0.9 0.5 1.5 1.5 3.8 16% 30.3 6% Total 408.2 21.3 20.0 22.4 24.9 23.4 100% 520.3 100% Source: Institute for Capacity Development, IMF. 1 Budgets approved by Japan. Not adjusted for projects completed below approved budgets. 2 Does not include commitments from Japan to multi-partner vehicles. 3 Commitments for programs from FY11 onwards include the trust fund management fee. 4 Starting in FY08, data for countries in Central Asia are classified under Middle East, and prior to that were classified under Eastern Europe. TABLE 4. JSA ANNUAL COMMITMENTS FOR CAPACITY DEVELOPMENT BY TOPIC, FY1993-20201, 2, 3 (In millions of U.S. dollars) FY2020 FY1993-2020 Topic FY1993-2015 FY2016 FY2017 FY2018 FY2019 Total % Total % Fiscal 134.7 9.5 7.6 9.6 10.9 11.1 47% 183.4 35% Monetary and Capital Markets 135.0 3.7 4.9 4.1 7.0 4.6 19% 159.3 31% Macroeconomic Statistics 71.6 4.1 3.1 3.5 2.4 2.4 10% 87.1 17% Training 44.4 2.3 2.3 3.8 4.1 4.3 18% 61.2 12% Legal 10.1 0.6 0.6 0.2 - - 0% 11.5 2% Others 12.3 1.2 1.6 1.1 0.5 1.1 5% 17.8 3% Total 408.2 21.3 20.0 22.4 24.9 23.4 100% 520.3 100% Source: Institute for Capacity Development, IMF. 1 Budgets approved by Japan. Not adjusted for projects completed below approved budgets. 2 Does not include commitments from Japan to the multi-partner vehicles. 3 Commitments for programs from FY11 onwards include the trust fund management fee. 24 | Annual Report | Japan-IMF Partnership on Capacity Development


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    C REGIONAL OFFICE FOR ASIA AND THE PACIFIC REGIONAL OFFICE FOR ASIA In August 2019, OAP jointly organized have benefitted from the overnight AND THE PACIFIC a policy conference in Wellington with training camps, which are co-hosted The Regional Office for Asia and the Reserve Bank of New Zealand by the Japan International Cooperation the Pacific (OAP) was established on Inflation Targeting: Prospects Agency (JICA). in Tokyo in 1997. It operates as the and Challenges. The conference brought together about 100 experts To bolster its outreach efforts, IMF’s interface with Asia, promoting from central banks, think-tanks and OAP maintains two websites (OAP CD activities, engaging in public government agencies around the and JISPA) to share data and relations and outreach in Japan and Asia-Pacific region to discuss broad information and contributes to IMF abroad, collaborating with regional issues related to monetary policy, labor social media feeds in both Japanese organizations and forums, contributing markets and the future of inflation and English. In addition, the regional to IMF surveillance and research targeting. The discussions were held in office engages with the media, activities, and supporting the work the context of low inflation and sluggish businesses and think tanks in Japan of the IMF in Japan and the region. productivity growth in advanced and elsewhere in the Asia-Pacific region In FY2020, this included support economies and high volatility of capital to showcase the IMF’s work, and OAP for three visits to Japan by the IMF flows in emerging market countries, welcomes groups of visitors to its office Managing Director—including the first and provided a strong learning for briefings on the IMF’s role and visit to Japan by Kristalina Georgieva opportunity for policy makers from a its operations. in her new capacity at the IMF—in the context of the G20 hosted by Japan broad range of economies. and the annual Article IV mission. SURVEILLANCE AND Among other policy outreach events RESEARCH WORK are the Economic Issues Seminars on PUBLIC RELATIONS AND OUTREACH OAP staff monitor and report regularly the global economic outlook and other to IMF HQ on developments in the In FY2020, OAP continued to organize key thematic issues. In FY2020, OAP region and participate in selected IMF a range of conferences, seminars and held eight such seminars for public annual consultation missions; during workshops in Japan and throughout audiences in Tokyo. To foster future FY2020 these included Article IV the region to enhance public generations of macroeconomists, OAP missions and related work for Japan, understanding of the IMF’s operations also held two Macroeconomist Training Cambodia, Lao P.D.R., Myanmar, and and policy recommendations. Many Program courses in Tokyo for university Vietnam. OAP economists provide of these events are carried out students; participants in these courses inputs to the APD Regional Economic in collaboration with universities, learn the IMF’s basic analytical tools Outlook and regularly carry out think tanks, central banks, finance and methods used for economic research on various economic policy ministries, and other government and surveillance. Since 2017, a total of 178 issues of regional interest. international organizations. students from 33 different countries Annual Report | Japan-IMF Partnership on Capacity Development | 25


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    Director Chikahisa Sumi (sitting third from the left) and staff of the IMF Regional Official for Asia and the Pacific (OAP) in Tokyo during the IMF’s Managing Director’s visit. DELIVERING CAPACITY training course on macroeconomics “Regional Forum on Fostering Growth DEVELOPMENT at the graduate level, and the in South Asia” in New Delhi that OAP OAP organizes seminars and 10-day JISPA Continuing Education co-sponsored with the IMF’s Asia and conferences in selected CD areas to (JISPA-CE) Program, in which JISPA Pacific Department (APD) and the South meet the needs of policymakers in alumni brush up their knowledge on Asia Regional Training and Technical the region and to keep them abreast macroeconomic policymaking. Both Assistance Center (SARTTAC). of current macroeconomic issues and programs provide senior officials challenges. These events are financed with opportunities to discuss current with the generous support of the macroeconomic issues and exchange Government of Japan. views with regional peers.1 Each year, OAP administers the OAP organizes and sponsors peer-to- Japan-IMF Scholarship Program for peer CD seminars and conferences to Asia (JISPA), in which about 35 junior enhance policymaking skills of officials officials from Asia pursue a graduate in the region. In FY2020, these included degree in macroeconomics and the FAD-OAP training workshop on related fields. There are more than the Tax Administration Diagnostic 730 alumni of the scholarship program Assessment Tool (TADAT) organized since it started in 1993 and many of with the Inland Revenue Board of these graduates now hold high policy Malaysia; the 5th IMF-JICA Conference positions in their own countries. on “Developing Asia: Achieving Inclusive and Sustainable Growth with The regional office also offers highly Sound Fiscal Management”; and the valued programs for senior officials in the region. These include the 1 The FY2020 offerings of JIMS and the Japan-IMF Macroeconomic Seminar JISPA CE were postponed to FY2021 due for Asia (JIMS), a week-long executive to the COVID-19 pandemic. 26 | Annual Report | Japan-IMF Partnership on Capacity Development


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    Box 10. JISPA Townhall Meeting with Managing Director Kristalina Georgieva Kristalina Georgieva made her first visit to Japan in November 2019 in her position as Managing Director of the IMF. During this visit, a JISPA townhall meeting with the MD was organized, with about 50 current JISPA scholars in attendance. Kristalina spoke of her views on global economic challenges and shared her career experience, in which she started out as a professor in an emerging market economy and later transitioned to the top of an international organization. “A program like this is tremendously important because it brings people from different countries, different cultures and different perspectives to learn together and to become citizens of the globe,” she told the young officials, adding that this type of learning experience would reinforce the international cooperation for which the IMF and Japan share a vision. The scholars said that they were highly encouraged and motivated to study harder so as to make further contributions to their countries and the Asia and Pacific region. And they stressed that Japan is a great place for all JISPA scholars to nurture their professionalism and their friendships so that they can better cooperate on future policy dialogue and regional issues. Annual Report | Japan-IMF Partnership on Capacity Development | 27


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    Workshop of JISPA Scholars with Capacity Development Office in Thailand (CDOT) Director David Cowen. 28 | Annual Report | Japan-IMF Partnership on Capacity Development


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    D JAPAN-IMF SCHOLARSHIP PROGRAM FOR ASIA The Japan-IMF Scholarship Program to seminars and events organized by and supported 67 scholars in total, for Asia (JISPA) was established in OAP, providing further opportunities including seven PhD candidates.3 1993 and supports graduate studies to learn about current economic in macroeconomics or related fields and policy issues and to build a OAP’s special attention to JISPA in leading universities in Japan. network among themselves and with scholars helps foster their identity as It provides educational opportunities others. For the 2020 academic year, 3 The 2020 academic year of JISPA runs from to promising junior officials from JISPA awarded 37 new scholarships October 1, 2019 to September 30, 2020. economic agencies in countries in the Asia and Pacific region, and in Central Asia.1 FIGURE 4. JISPA ALUMNI BY AFFILIATION, FY1993-2020 JISPA offers a partnership track with tailored master’s programs in four partner universities and an open track 22 (3%) 7 (1%) with graduate programs (including Trade/Commerce Cabinet Ministry Office PhD degrees) in any university in Japan.2 A 2½ month orientation 28 (4%) 24 (3%) Statistics Bureau Others program helps new incoming scholars prepare for their studies and life in Japan. Throughout the duration of their 97 (13%) scholarship, JISPA scholars are invited Economic Affairs Ministry and Agency 1 The scholarship program is open to candidates from Bangladesh, Bhutan, 401 (54%) Cambodia, India, Indonesia, Kazakhstan, Central Bank the Kyrgyz Republic, the Lao People’s Democratic Republic, Malaysia, Maldives, Mongolia, Myanmar, Nepal, Pacific 158 (22%) Island countries, Papua New Guinea, the Ministry of Philippines, Sri Lanka, Tajikistan, Thailand, Finance/Tax Authority Timor-Leste, Turkmenistan, Uzbekistan, and Vietnam. 2 The four partnership universities are the National Graduate Institute for Policy Studies, Hitotsubashi University, International University of Japan, and the University of Tokyo. Annual Report | Japan-IMF Partnership on Capacity Development | 29


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    TABLE 5. JAPAN-IMF SCHOLARSHIP PROGRAM FOR ASIA DISTRIBUTION OF SCHOLARS BY COUNTRY AND AFFILIATIONS, 1993–20204 Scholars by Country Number Percent of which graduates China 102 12.4% 100 Vietnam 98 11.9% 93 Uzbekistan 91 11.0% 84 Cambodia 74 9.0% 65 Myanmar 72 8.7% 61 Mongolia 56 6.8% 44 Kyrgyz Rep. 50 6.1% 46 Thailand 46 5.6% 42 Kazakhstan 39 4.7% 38 Indonesia 37 4.5% 33 Bangladesh 35 4.2% 26 Philippines 30 3.6% 27 Lao P.D.R. 24 2.9% 18 India 22 2.7% 19 Nepal 12 1.5% 8 Tajikistan 10 1.2% 9 Sri Lanka 6 0.7% 6 Bhutan 5 0.6% 4 Malaysia 4 0.5% 4 Maldives 4 0.5% 4 Fiji 3 0.4% 3 Turkmenistan 2 0.2% 2 Timor-Leste 1 0.1% 1 Tonga 1 0.1% 0 Grand Total 824 100.0% 737 4 The Number of scholars includes the partnership-track recipients who continued onto the Ph.D. program under the open-track. “Japan-IMF” scholars and strengthen analysis through lectures and group their ties with the program after discussions. OAP also organized their graduation. Managing Director several activities for the scholars, Kristalina Georgieva met with the including the seminar sessions with the scholars in November 2019 during Japanese Ministry of Finance and the her first IMF visit to Japan (see Box Bank of Japan as well as the annual 10). Through the dialogue, she shared thesis presentations. her experiences and provided advice to the scholars as future policy The community of “Japan-IMF” scholars policymakers. Following the inaugural has been growing. Since 1993, the JISPA Summer Workshop (SW) in 2018, program has awarded 824 scholarships the second offering of the SW was and 737 scholars have graduated (see conducted in September 2019 for 25 Table 5 and Figure 4). A number of scholars, representing 12 countries, graduates have successfully advanced who were continuing their second in their policymaking careers, attaining year of studies. It helped the scholars roles such as Governor or Minister. better understand the IMF’s work and 30 | Annual Report | Japan-IMF Partnership on Capacity Development


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    A E JAPAN-IMF SCHOLARSHIP PROGRAM FOR ADVANCED STUDIES Japan provides scholarships alumni, 16 of whom were Japanese, to Japanese nationals to study have joined the IMF. Twenty-six are macroeconomics at the doctoral level still working at the IMF as of May to prepare them for a successful career 2020. The most recent scholar joined at the IMF. The Japan-IMF Scholarship the Fund in September 2018 as an Program for Advanced Studies (JISP) EP. Of the 26 former JISP alums began operating in 1996. Since 2009 currently on staff, 22 were hired as only Japanese nationals have been staff members through the EP (1 is eligible, and up to seven scholars are a current EP and 21 are former EPs) now admitted annually. and the remainder joined at the mid-career level. JISP scholars are enrolled in universities outside Japan that have renowned JISP is administered by the IMF doctoral programs in macroeconomics in collaboration with the Institute or other fields relevant to IMF work. of International Education (IIE). The vast majority study at universities The attached table shows the number in the United States, while some are of Japanese scholars accepted to enrolled in Canadian and European the JISP and employed by the IMF universities. The scholarship covers since 1996. tuition and reasonable costs for two years of study and includes a paid summer internship at the IMF. All new scholars attend a short orientation program in Washington, D.C., to introduce them to the IMF’s work and staff. Scholars are also invited to the IMF Jacques Polak Annual Research Conference After they graduate, scholars are required to apply to the IMF Economist Program (EP), the entry-level employment program for economists, and accept an EP position if offered. Since the program’s inception, 35 JISP Annual Report | Japan-IMF Partnership on Capacity Development | 31


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    JISP Scholars with Japan Executive Director, Mr. Tanaka and staff TABLE 6. JAPAN-IMF SCHOLARSHIP PROGRAM FOR ADVANCED STUDIES Number of Japanese Scholars Accepted to JISP and to the IMF, 1996–2020 1996- JAPAN 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TOTAL SCHOLARS 95 7 7 7 3 4 4 5 4 4 5 145 ACCEPTED to JISP SCHOLARS 11 2 1 1 1 16 ACCEPTED to IMF 32 | Annual Report | Japan-IMF Partnership on Capacity Development


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    APPENDICES Annual Report | Japan-IMF Partnership on Capacity Development APPENDICES | 33


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    APPENDIX I. JSA Technical Assistance and Training— FY2020 Portfolio Summary Overall Region Topic Project Description Program Budget Fiscal Year 2020 Program APD FAD Strengthening Public Financial Management in selected South-East Asian Countries 6.0 Global FAD Strengthening Global Infrastructure Governance 7.5 APD STA Regional Government Finance Statistics 3.5 APD FAD Eleventh IMF Japan High Level Tax Conference for Asian Countries in Tokyo 0.2 Fiscal Year 2019 Program AFR FAD Strengthening Fiscal Sustainability through Core Budget Functions in Fragile States in 5.2 Sub-Saharan Africa APD FAD Supporting Tax Administration Reforms in Selected Asian Countries 4.5 APD Training Singapore Training Institute - Continuing Training on Economic and Financial Policy Analysis 8.2 in Asia APD MCM Cambodia - Strengthening Risk-based Banking Supervision 2.0 APD MCM Indonesia - Banking, Non-Bank Financial Institution and Conglomerate Supervision 2.8 APD MCM Cambodia - Systemic Financial Stability Analysis 0.9 APD CDOT Integrating Macro-Financial Analysis into Macroeconomic Management 3.2 Fiscal Year 2018 Program APD FAD Developing Customs Administrations in the Southeast Asia Region 4.0 APD FAD Supporting Improved Treasury Management and Modernization of Financial Management Systems 4.0 Global Training Japan-IMF Initiative on Online Learning 4.5 APD MCM Supporting Monetary and Foreign Exchange Operations in Cambodia, Myanmar and Vietnam 3.2 APD MCM Myanmar: Building Comprehensive Bank Supervision and Regulation 2.1 APD MCM Strengthening Financial Supervision in Mongolia 2.7 APD STA Improving External Sector Statistics in the Asia-Pacific Region 3.3 34 | APPENDICES Annual Report | Japan-IMF Partnership on Capacity Development


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    APPENDIX I. (CONTINUED) Overall Region Topic Project Description Program Budget Fiscal Year 2017 Program MCD FAD Fiscal Risk Analysis & management, public investment management, budget preparation, and 5.2 fiscal reporting in Caucasus and Central Asian countries and Iran AFR FAD Modernization of Customs Administration in West Africa 3.0 APD MCM Strengthening Modernization of the Central Bank of Myanmar 4.2 AFR STA External Sector Statistics for West & Central Africa 4.0 Fiscal Year 2016 Program APD LEG National Risk Assessment / National Strategy and Continued Development of AML/CFT 1.3 Framework in Myanmar APD STA Regional Government Finance Statistics 3.5 Fiscal Year 2015 Program APD STA Enhanced Data Dissemination in Countries in the Asia-Pacific Region 2.1 Fiscal Year 2012 Program AFR MCM/ Supporting Preparations for Monetary Union in the East Africa Community 5.0 STA Annual Report | Japan-IMF Partnership on Capacity Development APPENDICES | 35


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    APPENDIX II. Joint Japan-IMF Field Visits, FY1996–FY20201 (1) The Pacific Financial Technical Assistance Center (PFTAC) in Fiji and Western Samoa, March 1996 (2) Kazakhstan and the Kyrgyz Republic, June 1996 (3) Zambia and Zimbabwe, December 1996 (4) Russian Federation, July 1997 (5) Bulgaria and Lithuania, June 1998 (6) Indonesia, IMF-Singapore Regional Training Institute (STI), and Thailand, June/July 1999 (7) Belarus and Slovenia, June 2000 (8) Azerbaijan and the Joint Vienna Institute (JVI), June 2001 (9) Cambodia and the IMF-Singapore Regional Training Institute (STI), June 2002 (10) Mongolia and Timor-Leste, September 2002 (11) Indonesia and Fiji, December 2003 (12) Botswana and the East Africa Regional Technical Assistance Center (AFRITAC East) in Tanzania, December 2005 (13) Cambodia, the IMF-Singapore Regional Training Institute (STI), and the Philippines, March 2007 (14) Middle East Regional Technical Assistance Center (METAC) in Lebanon, May 2008 (15) Cambodia, and the IMF-Singapore Regional Training Institute (STI), January 2009 (16) Philippines and Fiji (Pacific Financial Technical Assistance Center), May 2010 (17) Vietnam and Nepal, May 2011 (18) Cambodia, June 2012 (19) Lao P.D.R., Indonesia, and Thailand, March 2014 (20) Cambodia, Lao P.D.R., the IMF-Singapore Regional Training Institute (STI), and the IMF’s Capacity Development Office in Thailand (CDOT), May 2016 (21) South Asia Regional Training and Technical Assistance Center (SARTTAC) in India, and Nepal, February 2017 (22) Cambodia and Sri Lanka, February 2018 (23) Cambodia and Myanmar, March 2019 1 Because of scheduling difficulties, joint field visits were not carried out in FY2005 and FY2015. Field visits were cancelled in 2020 due to the COVID-19 pandemic. 36 | APPENDICES Annual Report | Japan-IMF Partnership on Capacity Development


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    APPENDIX III. Externally Financed Appointee Program The Externally Financed Appointee establishment of the EFA Subaccount A total of nine Japanese officials (EFA) program was established to in August 2013. have been hired under the program. accommodate growing interest from Two officials currently participate in member countries in having their EFA appointees are assigned to the program as economists, while one officials employed temporarily by the IMF core surveillance and program official will conclude his assignment IMF to gain experience and build their activities and also provide capacity and will return to Japan this summer. skills. The cost of placing and hosting development (CD) in order to broaden The experience and knowledge gained appointees is financed by the home their exposure to IMF operational work. at IMF will enable the returned officials country. IMF management approved EFA appointees are supervised by IMF to contribute more effectively to the the EFA program in July 2013 with an senior staff. To date, eight countries, Japanese government’s economic initial maximum of 15 appointments including Japan, participate in the EFA policy agenda. at a time. The Board approved and have made corresponding financial contributions to the program. Annual Report | Japan-IMF Partnership on Capacity Development APPENDICES | 37


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    APPENDIX IV. JSA Financial Statement Administered Accounts—Japan Financial Statement FY2020 (In Thousands of U.S. Dollars) 2020 2019 Balance Sheet as of April 30, 2020 and 2019 Assets Cash and cash equivalents1 60,428 55,211 Total assets 60,428 55,211 Resources Total resources 60,428 55,211 Income Statements and Changes in Resources for the Years Ended April 30, 2020 and 2019 Balance, beginning of the year 55,211 50,937 Income earned on investments 1,021 1,227 Contributions received 33,707 30,440 Contributions transferred (net) (3,109) (1,315) Operating expenses (26,403) (26,078) Net changes in resources 5,217 4,275 Balance, end of the year 60,428 55,211 Note: The IMF arranges for an annual audit of the JSA to be undertaken by its external auditors, in connection with their annual audit of the IMF’s own accounts, and for a separate certificate of completion to be provided to the Japanese authorities. 1 Net of accruals. The financial statement of the Administered Accounts in the IMF annual report, which includes this Subaccount, reports year end accruals separately. 38 | APPENDICES Annual Report | Japan-IMF Partnership on Capacity Development


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    ANNEX Annual Report | Japan-IMF Partnership on Capacity Development ANNEX | 39


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    ANNEX I. JSA New and Ongoing Capacity Development (CD) Programs in FY2020 40 | ANNEX (in millions of U.S. dollars) Approved Overall Expenses Japan Budget Project ID Program Region Topic Project Description Status Program through ID through Budget FY20 FY20 FAD_ JPN127 FY20 APD FAD Strengthening Public Financial Management in Active 6.0 2.2 1.7 APD_2020_02 selected South-East Asian Countries FAD_ JPN128 FY20 Global FAD Strengthening Global Infrastructure Governance Active 7.5 2.3 1.6 IMF_2020_01 STA_ JPN513 FY20 APD STA Regional Government Finance Statistics Active 3.5 1.4 0.7 APD_2020_01 FAD_ Seminar FY20 APD FAD Eleventh IMF Japan High Level Tax Conference for Active 0.2 0.2 0.0 APD_2020_04 Asian Countries in Tokyo FAD_ JPN125 FY19 AFR FAD Strengthening Fiscal Sustainability through Core Active 5.2 3.5 2.7 AFR_2019_01 Budget Functions in Fragile States in Sub-Saharan Africa FAD_ JPN126 FY19 APD FAD Supporting Tax Administration Reforms in Selected Active 4.5 3.2 2.3 APD_2019_01 Asian Countries ICD_ JPN205 FY19 APD Training Singapore Training Institute - Continuing Training on Active 8.2 5.4 4.7 STI_2019_01 Economic and Financial Policy Analysis in Asia MCM_ JPN417 FY19 APD MCM Cambodia - Strengthening Risk-based Banking Active 2.0 1.1 0.6 KHM_2019_01 Supervision MCM_ JPN418 FY19 APD MCM Indonesia - Banking, Non-Bank Financial Institution and Active 2.8 1.8 0.3 IDN_2019_01 Conglomerate Supervision MCM_ JPN419 FY19 APD MCM Cambodia - Systemic Financial Stability Analysis Active 0.9 0.8 0.6 KHM_2019_02 APD_ JPN604 FY19 APD CDOT Integrating Macro-Financial Analysis into Active 3.2 1.6 1.1 TTA_2019_01 Macroeconomic Management FAD_ JPN123 FY18 APD FAD Developing Customs Administrations in the Southeast Operationally 4.0 4.0 3.4 APD_2018_01 Asia Region closed Annual Report | Japan-IMF Partnership on Capacity Development


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    Approved Overall Expenses Japan Budget Project ID Program Region Topic Project Description Status Program through ID through Budget FY20 FY20 FAD_ JPN124 FY18 APD FAD Supporting Improved Treasury Management and Operationally 4.0 4.0 3.0 APD_2018_02 Modernization of Financial Management Systems closed ICD_ JPN204 FY18 Global Training Japan-IMF Initiative on Online Learning Operationally 4.5 4.5 4.0 IMF_2018_04 closed MCM_ JPN414 FY18 APD MCM Supporting Monetary and Foreign Exchange Active 3.2 2.9 1.3 APD_2018_01 Operations in Cambodia, Myanmar and Vietnam MCM_ JPN415 FY18 APD MCM Myanmar: Building Comprehensive Bank Supervision Active 2.1 1.5 1.3 MMR_2018_02 and Regulation MCM_ JPN416 FY18 APD MCM Strengthening Financial Supervision in Mongolia Active 2.7 2.1 0.6 MNG_2018_04 STA_ JPN512 FY18 APD STA Improving External Sector Statistics in the Asia-Pacific Active 3.3 3.1 2.0 APD_2018_02 Region Annual Report | Japan-IMF Partnership on Capacity Development FAD_ JPN121 FY17 MCD FAD Fiscal Risk Analysis & management, public investment Active 5.2 5.2 4.4 MCD_2017_01 management, budget preparation, and fiscal reporting in Caucasus and Central Asian countries and Iran FAD_ JPN122 FY17 AFR FAD Modernization of Customs Administration in West Operationally 3.0 3.0 2.4 AFR_2017_01 Africa closed MCM_ JPN413 FY17 APD MCM Strengthening Modernization of the Central Bank of Active 4.2 2.3 2.1 MMR_2017_01 Myanmar STA_ JPN511 FY17 AFR STA External Sector Statistics for West & Central Africa Operationally 4.0 4.0 3.9 AFR_2017_04 closed LEG_ JPN302 FY16 APD LEG National Risk Assessment / National Strategy and Active 1.3 1.3 1.2 MMR_2016_01 Continued Development of AML/CFT Framework in Myanmar STA_ JPN510 FY16 APD STA Regional Government Finance Statistics Closed 3.5 3.5 3.4 APD_2016_10 STA_ JPN509 FY15 APD STA Enhanced Data Dissemination in Countries in the Asia- Operationally 2.1 2.1 1.8 APD_2015_10 Pacific Region closed MCM_ JPN404 FY12 AFR MCM/ Supporting Preparations for Monetary Union in the Active 5.0 5.0 3.9 EAC_2019_01* STA East Africa Community ANNEX | 41 * Formerly MCM_EAC_2012_01. Budget and expenses shown cumulative from FY12 through FY20.


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    JSA CAPACITY DEVELOPMENT PROGRAMS APPROVED IN FY2020 PROJECT: Eleventh IMF Japan High Level Tax Conference for Asian Countries in JSA#: N/A Tokyo IMF ID: FAD_APD_2020_04 IMPLEMENTATION PERIOD: from 05/2019 to 04/2021 Project Description and Objectives The eleventh Tokyo conference will further build on the achievements of the previous such conferences in strengthening the capacity of senior tax policymakers and tax administrators in Asian countries to address challenges in tax policy and administration. The aim is to help Asian countries enhance their revenue mobilization. Overview of Progress and Key Results Achieved The conference did not take place as planned this year due to the COVID-19 Pandemic. 42 | ANNEX Annual Report | Japan-IMF Partnership on Capacity Development


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    FY2020 (CONTINUED) PROJECT: Strengthening Public Financial Management in Selected South East JSA #: JPN127 Asian Countries IMF ID: FAD_APD_2020_02 TARGET COUNTRIES: Cambodia, Indonesia, Lao P.D.R., Malaysia, Mongolia, IMPLEMENTATION PERIOD: Myanmar, the Philippines, Thailand and Vietnam from 05/2019 to 04/2022 Project Description and Objectives This program focuses on capacity development (CD) in the areas of macro-fiscal management and forecasting, budget planning and execution, fiscal reporting and fiscal risk management. The overarching objective is to make the budget formulation process more strategic and policy-oriented, budget execution more robust and efficient, the analysis and management of fiscal risks more comprehensive, and fiscal reporting more reliable. Overview of Progress and Key Results Achieved The project got off to a good start, with delivery largely led by the Bangkok-based Regional PFM Advisor. Project activities gained traction with the authorities in seven of the nine eligible countries, with notable progress in at least six. This project benefits from close coordination with the IMF Capacity Development Office in Thailand, logistically and in CD delivery. In Cambodia, the work on the Financial Management Information System (FMIS) roll-out and reform of aligned business processes was further advanced. The scope of the FMIS has been broadened by integration of non-tax revenue reporting. In Myanmar, a newly developed Treasury reporting system, FIRST, is now fully functional at the Treasury level and automates the collection and aggregation of financial reports of government departments and state-owned economic enterprises (SEEs). The roll-out of the web-based reporting functionality to departments and SEEs is ongoing. Support was also extended to strengthen the government’s financial oversight on SEEs, which, due to their relative size, are critical to overall fiscal management. In Lao P.D.R., work commenced, in collaboration with the World Bank, on the modernization of the chart of accounts, which will enhance the quality of fiscal reporting. In Indonesia, good progress has been achieved in developing a transparent budget baseline methodology and a budget analysis toolkit. Training is provided to a group of 30 budget analysts and to a wider audience through outreach events. In parallel, a strategy for introducing the Fund’s public sector balance sheet approach for fiscal policy has been developed. In Malaysia, the structure and elements of a new fiscal responsibility law were developed and institutional requirements for a transparent and proactive debt and contingent liabilities management were identified. In the Philippines, guidance was provided for strengthening governance and financial oversight of government-owned and controlled corporations—a major source of fiscal risks. In Vietnam, the project supported the drafting of a new public-private partnership law and reaching consensus within the government on its key elements. Workshops on fiscal risk management, with CDOT’s Macroeconomic Advisor, and on governance of public service delivery units aimed to improve the risk profile and the efficiency of government expenditure. The Regional PFM Advisor provides regular regional training and outreach events, and is actively engaged in project activities in Cambodia, Indonesia, Lao P.D.R., Myanmar, and Vietnam in coordination with HQ, development partners, as well as with CDOT’s Regional Treasury Advisor. Annual Report | Japan-IMF Partnership on Capacity Development ANNEX | 43


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    FY2020 (CONTINUED) PROJECT: Infrastructure Governance Facility JSA #: JPN128 IMF ID: FAD_IMF_2020_01 TARGET COUNTRIES: Primary beneficiaries: LIDCs and EMEs in Asia (including IMPLEMENTATION PERIOD: Central Asia and the Pacific) and Africa. from 05/2019 to 04/2022 Project Description and Objectives The project aims to strengthen infrastructure governance through stronger institutions to achieve sustainable and inclusive growth. The project provides capacity development support to help countries improve infrastructure investment efficiency and to promote good decisions on infrastructure spending with due consideration to debt sustainability. The project also aims to raise awareness of the importance of strong infrastructure governance and good practices. Overview of Progress and Key Results Achieved In FY2020 the project funded 7 headquarters-led missions, 5 short-term expert (STX) visits, a joint workshop for two regions, and two infrastructure governance advisors (LTX). Additional activities had been planned in March and April 2020 including two HQ missions and a regional seminar but were postponed due to COVID-19. Capacity development activities funded by the project have focused on the delivery of Public Investment Management Assessments (PIMAs) and PIMA follow-up missions. In FY20, these activities have provided tailored action plans, recommendations, and implementation support to improve public investment management (PIM) across eleven countries. • PIMAs were conducted in Belize, Gabon, Cambodia, Eswatini, Moldova, and Mauritania. A PIMA follow-up mission took place in Togo. • Short-term experts and IG advisors provided implementation support to Angola, Indonesia, Kenya, Uganda, Rwanda and Gabon. A seminar was delivered for small islands of the Pacific and the Caribbean, making use of the latest analytical and capacity development tools in PIM, along with peer-to-peer exchanges and learning in the context of resilience to climate change. Participation of LTX in workshops has helped raise awareness on quality infrastructure investment in international fora (including a meeting of the G20/OECD joint taskforce on long-term investment in Paris in October 2019). Significant work took place during the year on infrastructure governance knowledge management. An IG Facility secretariat function has been set up to work on a dedicated digital platform to store infrastructure governancerelated information in an organized, accessible and timely manner for internal and public use. A PIMA Handbook is being prepared and will be published in 2021. It will include practical guidance for performing PIMA assessments and good international practices. 44 | ANNEX Annual Report | Japan-IMF Partnership on Capacity Development

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